N.A. Pulp Markets under Pressure

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North American pulp prices remain under pressure, reports Mark Wilde with Deutsche Bank. July pulp data was modestly negative, he adds. Hardwood inventories rose four days to 44 days of supply and softwood rose three days to 32 days. Shipments were up 6.3% y/y.

Spot prices in North America are currently at $600 - $640/metric ton. At current spot price levels, most high-cost mills are near breakeven levels. "Unlike softwood, we think there is additional downside risk to U.S. hardwood prices," Wilde says.